danrnsmyth
Well-known member
Hope your families enjoy some time together for the holidays and can't help but to reflect on the coming year as this will be the year I hang it up after starting work at age 16 due to the premature death of my coal miming dad.
We have enjoyed the second longest bull market in the history of markets and although if I could predict the markets I would have already retired, But markets tend to reflect the economy and when people that want to work can find jobs and corporate america is not being treated as an enemy of the state good things can and do happen. Sometimes the leader that is best for social issues/ human rights tends to be clueless about economics and how much of someone elses's money they are entilted to and some leaders are better business people and have other weaknesses .
THe point being that although I think this market may have some room left and I know alot of people were suspecting a correction four or five thousand points ago I don't see a major economic issue. Certainally a major unforseen
issue like a new war (geopolitical issue- I think it is called) could certainly change things and persoanlly I would be reluctant to dump large lump sum amounts of money into the market at this lofty price level.
So...it is a great time to review some asset allocation and perhaps pull some profits into some fixed income vehicles. THat is hard to do when we hve seen the returns we have seen but you don't have to pull out everything but if you know that you need 1200 a month to supplement your social security and or pensions then pull out 5 years worth and place 75k into a fixed income vehicle to cover that for the next five years. It is hard to plan for the next 20 years and easier to simpy plan from Point A to Point B on a five year time frame and then remeasure once you get to Point B.
Interest rates are still low and returns on fixed income vehicles are not very exciting but simply create some dependablity for a portion of funds. For those who who are still plugging away or like me facing a rollover the methodology of dollar cost averaging by purchasing into the markets gradaully as opposed to one large lump sum purchase is a viable option. That way if we have a correction then you have changed a short term castastrophe into a buying opportunity and evenually the markets wil recover. Markets recover because what we pay for boats, crankbaits, Vienna, shirts, shorts, food, trucks and etc tend to go up in price over time and our kids and grandkids will likely earn more than we ever did...and that tends to drive equity prices higher over time although pull backs are not only inevitabe but occasioanlly needed so that those stocks can be purchased at a price such that money can be made on them yet again. It is just really hard to get excited about that when it happens...so keep enough in fixed income to get thru that dip so you don't have to sell stocks when it is an inopportune time to do so.
This is not a bad time to sit down with an advisor you trust and have them look at your specific siuation as no one size fits all...may the blessings of God be with you my fishing friends
We have enjoyed the second longest bull market in the history of markets and although if I could predict the markets I would have already retired, But markets tend to reflect the economy and when people that want to work can find jobs and corporate america is not being treated as an enemy of the state good things can and do happen. Sometimes the leader that is best for social issues/ human rights tends to be clueless about economics and how much of someone elses's money they are entilted to and some leaders are better business people and have other weaknesses .
THe point being that although I think this market may have some room left and I know alot of people were suspecting a correction four or five thousand points ago I don't see a major economic issue. Certainally a major unforseen
issue like a new war (geopolitical issue- I think it is called) could certainly change things and persoanlly I would be reluctant to dump large lump sum amounts of money into the market at this lofty price level.
So...it is a great time to review some asset allocation and perhaps pull some profits into some fixed income vehicles. THat is hard to do when we hve seen the returns we have seen but you don't have to pull out everything but if you know that you need 1200 a month to supplement your social security and or pensions then pull out 5 years worth and place 75k into a fixed income vehicle to cover that for the next five years. It is hard to plan for the next 20 years and easier to simpy plan from Point A to Point B on a five year time frame and then remeasure once you get to Point B.
Interest rates are still low and returns on fixed income vehicles are not very exciting but simply create some dependablity for a portion of funds. For those who who are still plugging away or like me facing a rollover the methodology of dollar cost averaging by purchasing into the markets gradaully as opposed to one large lump sum purchase is a viable option. That way if we have a correction then you have changed a short term castastrophe into a buying opportunity and evenually the markets wil recover. Markets recover because what we pay for boats, crankbaits, Vienna, shirts, shorts, food, trucks and etc tend to go up in price over time and our kids and grandkids will likely earn more than we ever did...and that tends to drive equity prices higher over time although pull backs are not only inevitabe but occasioanlly needed so that those stocks can be purchased at a price such that money can be made on them yet again. It is just really hard to get excited about that when it happens...so keep enough in fixed income to get thru that dip so you don't have to sell stocks when it is an inopportune time to do so.
This is not a bad time to sit down with an advisor you trust and have them look at your specific siuation as no one size fits all...may the blessings of God be with you my fishing friends
